Part 1: Explain the need for good/service and identify multiple examples of land, labor, and capitol, and explain entrepreneurship
The Need for My Good
I am producing professional clarinets. Professional clarinet players and other high-level musicians need quality and dependable clarinets. Without clarinets, certain music genres would be lacking the voice required to attain the sound desired; blues, jazz, and symphonic ensembles require clarinet players, and those clarinet players require clarinets with which to play on.
Factors of Production
Land:
The plot of land that the factory uses
Timber to create the shafts
Labor:
Workers to assemble the finished clarinet parts
Workers to test the clarinets for proficiency
Workers to sell clarinets online and over the phone
Workers to ship clarinets
Workers to deliver clarinets
Capitol:
Machinery to shape the timber into shafts
Machinery to drill and bore the shaft
Silver to create the keys
Molds to create the correct shapes for the keys
Electricity to run the machines
Cork for the keys' bottoms and the segments' joints
Screws that hold the pieces together
Welding that holds the wire springs in place
Leather to produce fine cases for the finished products
Trucks to transport the finished clarinets
Entrepreneurship:
While other professional clarinet companies like Yamaha, Selmer, and Buffet all produce clarinets, their companies have many factories across many countries. Spread across such a large area, these companies would have to pay a large amount of workers, and pay larger amounts to keep their factories running. I, however, would only have one factory open, and would therefore have to pay fewer workers and less money. Additionally, I could hire clarinet players to test the final products to ensure that my produced goods are at the quality that is desired by professionals. Also, since my marginal costs are lower than my marginal benefits, I can make a larger profit margin than that of a larger company. I am similar to the clarinet company of LeBlanc in that once my company has grown large enough, I will buy another clarinet-producing company.
Comparative Advantage
My factory makes clarinets. Interestingly enough, there are many forms of the clarinet; with the Bb Soprano Clarinet, the Eb Soprano and Alto Clarinets, the Bb Bass Clarinet, and the Bb Contrabass Clarinet, there are many options. However, my factory only produces two types of clarinets: Bb Soprano clarinets, and Eb Soprano clarinets. Eb Soprano clarinets are smaller than the standard Bb Soprano clarinets, and therefore require fewer resources. My factory - on any given production day - can produce 50 Bb Soprano clarinets or 75 Eb Soprano clarinets. A standard Yamaha factory, however, can produce 50 Bb Soprano clarinets or 65 Eb clarinets. Therefore, my factory has the comparative advantage in making Eb Soprano clarinets because my opportunity cost is lower. I can create 1 Eb Soprano clarinet with the opportunity cost of 0.6 Bb clarinets, whereas a Yamaha factory can produce 1 Eb clarinet with an opportunity cost of 0.77 Bb clarinets. With a lower opportunity cost, I have the comparative advantage.
Scarcity's Part in my Factory
In my factory, labor will most likely be the item that is found to have scarcity in my factory. Since my factory will be starting small, I will have a smaller labor force until my company expands and opens more factories. Even then, however, my business is such a specific area, that I am unlikely to find an enormous group of people that are willing to work in a clarinet factory.
Part 1: Explain the need for good/service and identify multiple examples of land, labor, and capitol, and explain entrepreneurship
The Need for My Good
I am producing professional clarinets. Professional clarinet players and other high-level musicians need quality and dependable clarinets. Without clarinets, certain music genres would be lacking the voice required to attain the sound desired; blues, jazz, and symphonic ensembles require clarinet players, and those clarinet players require clarinets with which to play on.Factors of Production
Land:Labor:
Capitol:
Entrepreneurship:
Comparative Advantage
My factory makes clarinets. Interestingly enough, there are many forms of the clarinet; with the Bb Soprano Clarinet, the Eb Soprano and Alto Clarinets, the Bb Bass Clarinet, and the Bb Contrabass Clarinet, there are many options. However, my factory only produces two types of clarinets: Bb Soprano clarinets, and Eb Soprano clarinets. Eb Soprano clarinets are smaller than the standard Bb Soprano clarinets, and therefore require fewer resources. My factory - on any given production day - can produce 50 Bb Soprano clarinets or 75 Eb Soprano clarinets. A standard Yamaha factory, however, can produce 50 Bb Soprano clarinets or 65 Eb clarinets. Therefore, my factory has the comparative advantage in making Eb Soprano clarinets because my opportunity cost is lower. I can create 1 Eb Soprano clarinet with the opportunity cost of 0.6 Bb clarinets, whereas a Yamaha factory can produce 1 Eb clarinet with an opportunity cost of 0.77 Bb clarinets. With a lower opportunity cost, I have the comparative advantage.Scarcity's Part in my Factory
In my factory, labor will most likely be the item that is found to have scarcity in my factory. Since my factory will be starting small, I will have a smaller labor force until my company expands and opens more factories. Even then, however, my business is such a specific area, that I am unlikely to find an enormous group of people that are willing to work in a clarinet factory.